Green Bond Second Opinion

RAEX-Europe’s Green Bond Second Opinion is an independent opinion focused on assessing how the framework of the green bond issued complies with the Green Bond Principles*. It also assesses the issuer’s environmental performance related to the eligible projects and the environmental impact of these projects.

First of all, we analyse how the issuer plans to use the proceeds from the issuance, how the project selection and evaluation process are performed, what the issuer's proposal to manage the proceeds is and how it plans to report the allocation of funds. This analysis reassures investors that the green bond being issued complies with all the requirements set in place in the Green Bond Principles. Besides this, we go beyond by assessing the environmental performance and impact of the project. To assess the performance we first determine the company’s general commitment to sustainability. We then identify the risk exposures of the eligible projects and detect which policies and processes the company has in place to mitigate them and whether or not these policies and processes are adequate from our point of view. In order to assess the impact, we define the industry and regional status quo and analyse how the eligible projects in which the bond proceeds will be invested change this status quo in a positive way.

We believe that the Green Bonds Second Opinion should not only assess the compliance of the framework with the Green Bond Principles, but should also explain the risk exposures which can have a material impact for the company and how these risks exposures are planning to be managed. On the same line, it is vital that we show in our assessment of whether or not there is a clear improvement of the current state of the green economy.

Our analysis is a tailor-made approach in accordance with the following guidelines:

  • Alignment with Green Bond Principles
    • Comparison of the Green Bond Principles and the entity’s green bond framework
  • Environmental performance
    • Assessment of the issuer’s commitment with sustainability
    • Analysis of risks exposures and mitigation
      • Identification of risk exposures which may arise from the eligible projects
      • Identification of policies and procedures which mitigate these risks
  • Impact of proceeds from the Green Bond issuance
    • Definition of the system's status quo of the system and analysis of if and how the eligible projects can impact the environment it in a positive and sustained manner
  • Alignment of the eligible projects with the Sustainable Development Goals (SDG)**
    • Assessment of whether or not the eligible projects correspond to one or more SDGs



* In the following link you can find the latest version of the Green Bond Principles Green Bond Principles 2018.

** Sustainable Development Goals